Glencore taking 9.9% stake in Palladium One
Palladium One Mining Inc. [PDM-TSXV, NKORF-OTC, 7N11-FRA] has entered a subscription agreement for a $4.25 million non-brokered private placement with a unit of the Swiss metals trading giant Glencore PLC
The announcement comes just days after Palladium One reported the discovery of a new high-grade nickel – copper zone at its Tyko nickel-copper project in Ontario.
Under the terms of the private placement, Palladium One will issue 28.3 million shares to Glencore at 15 cents per share. Upon completion of the private placement, Glencore will own approximately 9.99% of the issued and outstanding shares of Palladium One on a non-diluted basis.
On March 29, 2023, Palladium One shares closed unchanged at $0.095. The shares currently trade in a 52-week range of 26 cents and $0.075.
The private placement is expected to close by April 11, 2023.
“We are pleased to become a cornerstone investor in Palladium One,’’ said Wayne Ashworth, Head of Nickel Assets for Glencore. “The management team has been able to put together a sizeable land package focused on critical minerals,’’ he said. “The exploration results to date have been very encouraging and we look forward to working with Palladium One to build on the success the team has had to date.
Palladium One is a platinum-group-elements, nickel, copper exploration and development company. Its property portfolio consists of the its Lantinen Koillisma (LK) PGE-Cu-Ni project in north-central Finland
 and the Tyko Ni-Cu-PGE property near Marathon, Ont.
Exploration at LK is focused on targeting disseminated sulfides along 38 kilometres of favourable basal contact and building on an established NI 43-101-compliant mineral resource.
Palladium One said LK contains an indicated resource of 1.1 million ounces of total precious metals (TPM) (palladium, platinum, plus gold) (0.89 g/t), containing 111 million pounds of copper (0.13%, 92 million pounds of nickel (0.11%) and 5.0 million pounds of cobalt (65 g/t) in 38.2 million tonnes.
On top of that is an inferred resource of 1.1 million ounces of TPM (0.68 g/t), 173 million pounds of copper (0.16%), 152 million pounds of nickel (0.14%), and 8.0 million pounds of cobalt (74 g/t) in 49.7 million tonnes.
The latest estimates envisage three open pits in the Kaukua Area (including Murtolampi) and one at Haukiaho, 10 kilometres to the south of Kakua.
The company said it has accelerated baseline environmental studies and is was planning to advance a preliminary economic assessment (PEA).
Meanwhile, the company said the new high-grade nickel – copper zone at Tyko is located 3.5 kilometres southwest of the Smoke Lake Zone. “The discovery of another high-grade nickel – copper zone at Tyko further supports our thesis that we have a significant new nickel camp on our hands,’’ said Palladium One President and CEO Derrick Weyrauch.